FDS - Earnings call transcript Q1 2020 | FactSet Research Systems Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the FactSet Q1 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session [Operator Instructions].

I would now like to hand the conference over to your speaker today Rima Hyder. Go ahead Ma'am.

Rima Hyder

good and Marcella, you, morning everyone. Thank FactSet’s to first fiscal call. earnings XXXX quarter Welcome today new our Norwalk, joined from We're here brand Connecticut. global in headquarters

the section can call will our this our fair call. questions available A be will at Before point will the to via The today’s the our After be during would To to slides phone of site. I the open conclusion yourself accessed Web limit course slides prepared one on and Investor be Web of site please on from investors. that factset.com. Relations to the presentation we via one replay on reference plus our we we site everyone, be this the like Web call of posted webcast remarks, follow-up. will of begin, out to at

all use our notice and risks discuss the I on results, financial X, we of which Slide legal Before to the of measures. explains encourage review the statements non-GAAP forward-looking listeners

Additionally, for factors a XX-K actual forward-looking discussion and from statements. please XX-Q results these risk could cause that forms of to refer differ to materially our

on slide non-GAAP measures. Our will include discussions call financial certain presentation this and

the the to earlier and reconciliation comparable measures, are directly in today. such For our earnings measures appendix GAAP presentation the issued to most in release

are Chief me Shan, Executive Snow, Officer. Phil Joining Chief today Officer and Financial Helen

turn over Phil to discussion Snow. to the I'd like And now

Phil Snow

I'm half have healthy is fiscal backdrop to especially of year against 'XX to important most of sustained with pipeline more smallest quarter Thanks, for look pleased Rima, remind at and of typically performance full first across first pressures. and our progress. I a industry everyone. and year, our it's good of the that is growth year, morning the the appropriate fiscal our our everyone businesses. begin of we We And that want half the measures

areas the within earnings of top accelerate depth the with our content to targeted goal call, growth the a and three driving we of long-term. On over investments our and breadth in technology last outlined higher year plan line

the hit progress has early team running, ground encouraging delivering QX. Our in

markets our banking are and sector progress third-party content, We're successful sector we've launch our regulatory and deep Within private at expanding coverage markets good experts into markets. data. valued proceeding research private will street across following expansion hired of integrating making pace, our and the all data believe access lines, more sectors and of of business into are this our account resonate new We Wealth. coverage particularly

the since grow year, release Our on tech stack tripled the also of APIs continued quarter. We've of are to available the start early second in the efforts track number our fiscal more to results. yielding are and

our to cloud and run. the public we've data migration center to in opportunities fixed the well identified Our underway is long reduce costs

with Vault, in building We're very risk, and income new From Analytics multi-asset each from fixed pleased we performance momentum Wealth a our our perspective, and response are clients. the particular measurement also pipeline with positive strengths. product, product class showing

to be quarter available FactSet proud first data do OpenFin, Finally, solutions. the demand see so. for announced open we that and our to is We market providers now on this we're growing

to of adopters continue As us. access, open want is how backs and our wind they and the early shift deliver believe we we product flexible the more to to on information and where, to will when clients

on strong upon our relationships client clients These for at the groups, growing which changes our and retention evolved our client and and accounts to expansion. strategic include we've sharpened have sales, in C-level compensation industry. build we In cover plan the focus our top more looked

on technology increasing business teams We're sales also expanding our engineering new capitalize and opportunities. to

to our the ensure take proactive position to top time our steps measures will industry evolves, take to strength collective from continuing While impact we're of as line continued these growth.

professional and + by services decrease the ASV decrease research ASV growth at existing than clients. in in sell quarter, in higher the X%. grew driven cancellations reflects total, This a where ASV expected at cross-sell to Looking a our in rate in business through we add-on

In business clients increased we addition, this as added more year-over-year quarter. sales new

see cost pressures institutional continued churn our and managers within clients. we Overall, among asset banking

it's remember longer accordingly summer, that banks fiscal However, important FactSet. of the standing are the And our year hire later next benefit. large when they to we clients in expect

equity again, once and corporate in in we're private we investing. growth quarter, area firms users from This where the saw

we saw healthy the by banking hedge and we This when to In XXXX, opportunities. tougher contributed owners the Americas comparison the had existing business capitalize of asset new deepen churn a on we funds. We seasonal was quarter remain deals Wealth, business. our larger Americas and growth offset ASV. Americas, client in higher that versus had first as in research optimistic about relationships

Americas, political In the some is facing seen have the buy-side and regulations we with the with asset momentum region EMEA, of and cost Wealth institutional environment. the managers. positive with pressures and we uncertainty previously This have in same

Our pipeline as institutional with asset managers, for analytic asset see demand owners solutions. wealth the and was for managers, our healthy the year we

the the Analytics risk our was data region, lifecycle. local institutional asset data to the Pacific in owners growth driver the is primarily with The investment for Asia-Pac provides. of Asia side, driven for offerings solutions across especially the XX% in portfolio feeds and the CTS main for buy opportunity by managers, sold as asset we

potential. bullish investing our be are opportunity to its We on appropriately to in this region continue we capitalize about and

data another the the CTS quarter, saw Wealth, fixed continued we premium and to of driven as CTS promising risk while income Analytics in Wealth In and performance the demand growth to for spot, is core and feeds. see solid continue in unlock also its share Analytics. strong the products, first largest by contributor was we bright pace.

be Our adjusted operating to our believe annual throughout accordance in execute as our investment in the EPS margin quarter. line and that we this came in more strong guidance we will adjusted this year with plan. quarter And with continue

fiscal our a reiterate is tale year of want halves. I that closing, two In

sound the first on deliver healthy are our footing half that is fiscal to year. Our of for positioned well and pipeline are and we we 'XX, on believe the

shareholders, consistent believe proven a record have record we we We a that to will track of firmly value continue. long-term returning

increasingly It that higher more an taking clients, execute excel. change, are clients opportunities growth business. where we three-year winning continued manage flexible with early to signs and a continue technology And is area to as plan, help demanding that path are our to new efficient clear we open, through retention expanded ensure and to we existing indicate also

over who now of me call discuss the the performance. first Let quarter to will our turn specifics Helen

Helen Shan

operating growth and that with with to efficiency Thank made reflect improvements continues you, Phil, the operating XX% great is all productivity you. our throughout a We performance, It to earnings margin solid good here and began be of fiscal morning. and XXXX. XXXX

are plan, investment ramp While the beginning we start up are spend. and to on our we as of pace at hiring three-year we

and now organic I'll $XXX Wealth, and revenue X% walk million results. through GAAP by us the of million Growth the increased Analytics. primarily was to specifics driven respectively. $XXX quarter's and CTS

the For Americas' driven our revenue from geographic international Analytics Americas last over and grew CTS. grew and largely Analytics International benefited by organically. XX X% months, revenue increases X% revenue and Wealth, was segments CTS. in

points improvement XX%. than last versus totaled the previous expenses, for $XXX expenses over basis to XX%, operating million, With faster year. a X% Adjusted increased increased growth XXX operating growing margin year. our revenues quarter basis the GAAP point to margin a GAAP first XXX

which XXX on improvement largely points last than GAAP percentage came revenue, our was from of the of cost expense basis a basis. lower a As services, year

as by cost On XXX from locations, improvement technology compensation, in points. high an computer factors contractor was we This employee low our to shifts Contributing increase the decreases mix an adjusted to reflecting offset lower related benefit fee. basis, well as continue partially continued basis expenses in include was stack. upgrade the as

the and year travel On basis driven grew new and debt and an saw primarily by lower period higher on to percentage of basis higher SG&A associated offset and points. basis, improvement over move expense bad fees This as of expenses, partially with adjusted prior expense, basis. expense a points our entertainment, headquarters. compensation expressed is professional a result reductions XX we employee by rent revenue, XX in GAAP

productivity margin operating to quarters, past mix. the our to expense efforts over workforce sustain four disciplined through planned management We've improving and reflecting gain been and both grow our maintain our

with us back into the content business have key capital to in areas pleased the we are We redeploy that the of has ability progress given it made as and the technology.

On the recap, rate. FY To $XX targets 'XX. incrementally for we million per financial FY totaling last the investments $XX expense an earnings in each million in next three the our of build 'XX at call, provided year additional years,

plus growth we XX% at growth and single at noted, ASP in an operating margin 'XX. digits adjusted we in high adjusted the expect FY rates to our As EPS plus, XX% be

year. the earlier, building these of as be We've begun the course noted to on over projects execute spend the we'll Phil

of majority the XXXX, related. will people year cost fiscal be For the

resources heavily incremental second investments. We year the we be expect XX.X% investment with we capabilities. up strategy our in half of to in the XX.X% of out will and expense the to ramp remain phasing level margin guidance were the of in We line given in plan. and the We believe 'XX of our FY as confident weighted operating build

related rate rate of tax our on, onetime one our rate tax quarter to jurisdictions. tax Moving returns a for year This prior finalization in and included in the change of a few XX.X%. items foreign was

in we provided our adjustments, did Please when fiscal include keep for in have onetime been annual adjustments mind rate XX.X%. tax rate. onetime we would quarterly Excluding XXXX, that any not tax guidance

GAAP is our and to our XX% reconciliation to quarter of revenue at $X.XX XXXX, to EPS GAAP higher in $X.XX. disclosed margin. attributable EPS the increased Adjusted $X.XX first improved EPS versus release. end of the grew of this XX% primarily to press The adjustments quarter diluted

operations expenditures. the same Free primarily was of improvement define higher for last year. increase to as spending, XX% the higher due income, timing cash offset million payables, net an flow, partially of generated over an by quarter, was from we The increase the cash and collections capital capital cash in $XX which period plus

review, planned looked past our remains some metric measure ASV current Last neared ASV where On As is update higher to that is have to methodology annual metrics. as further with our client retention. quarter, calls, determined we and this for noted aligned CapEx retention out of have build year investments existing the our accurate new we due technology, our in as space retention leases of well an locations exploration. office on

also year-over-year. We're our at attained we've client and over XX%. grew retention, be X% last pleased For client retention the to of months, to XX% annual count the quarter, over clients XX number our first the our that reports continues remained ASV

Looking average at price XXX,XXX at quarter, million share. our share first an repurchase $XX for share of shares the for program we per $XXX repurchased

steady a to committed remain and to share We in Over the with creating the of form to approximately repurchases. repurchase value shares plan we returned at and our investors our in million long-term XX pace shareholders, have months, $XXX last for line year. last dividends

believe improvement gains. the discipline the year of our results more growth, content course value in long-term our plan in fiscal to our the operating XXXX invest and is year of reflect for turn sustainability comprehensive We of technology clients, the and and in our will in for integrated digital which fuel productivity over our this employees in The quarter operational future and shareholders. key first top-line progress in and

to questions. With over that, Marcella, we're now ready for your you.

Operator

from Your Instructions] comes question D.A. Heckmann the line from [Operator Co. of Davison Peter & first

Peter Heckmann

then expected. So of half how should significant that think this couple per into just XXXX. earnings back quickly think adjusted transitioning 'XX? guidance the I if in 'XX. about, correctly, imply about your we that -- spending as make you as because trying that I didn't you had And But of mean, see first sure the in quarters maybe I ramped do how negative we growth was upside, m I to does understanding mean But

Helen Shan

Helen. It's

that first ramps I don't spend rate that with but within end going year be two So, up, still And run is we continue to will the the doing, we 'XX. because same it were -- for amount be we'll no, through quarters we still we'll that to range. the of that believe at essentially up then of as see

it more much just for bit more me little related, expense so Most Let takes the up. this year time a color. to ramp people are give of

balance look say year, it phasing in the if XX%, will you over half. the I in roughly, second the be the the just would it's and first call of half

half the so -- plan. and that's three-year latter more spend investment the And the in then is of technology

we takes a be it So out hire, we the the issue guidance bit expect the to time as little for given that but it'll don't year. and be slow to gate about of an think we've

Peter Heckmann

us then just too there? give And while efforts have haven't a just and I you Can the Portware much you in trading. talked update you, quick Company's about

Phil Snow

Snow. Phil Yes. Hey, Peter, it's

seeing OMS that we're think, positive good capabilities EMS we're attributed momentum to, few over the yes, quarters, integration our co-FactSet. the well. with within in And as very a is offering space of the So, now I last and seeing the lot momentum also trading

we also traction. beginning So management now a just capabilities, to which is capabilities remind and we've we have integrated into order platform, everyone, have portfolio to those execution gain some management

are big of right very our these but and So trend the that positive, we're part excited about numbers is now Analytics suite. that

Operator

from Patnaik Barclays. question of comes Manav next line the Your from

Manav Patnaik

the of the you My first the question a over little you you quarter. hoping color of year called is guidance bit year? just this if bunch assuming know contracts is you Were of cancellations give was could they guidance? win more maybe help, that just course these just in on your us out contemplated a much that And I how full

Phil Snow

it's Phil. Manav, Hey

called So like. within across and that's expected the QX as coming and was out QX I into numbers that's sort cancellations very we well bit the out of to hiring that cancellations going banking in given predict sell-side a research. often are what of look never sure of a difficult think little to an large, of you're that pretty And as more

quarter think us, million back go script. quarter, when a well. a my at look do million X typically this we I fiscal that if couple even fairly or in XXXX for I said quarter as into QX years us a it's you And was smaller but back of go We X for small as

the into half, quarter. last we it's when good our opportunities the QX. rest And look year, versus weighted, pipeline for we the the of very head significantly at look a out when that's the So second we pipeline as about we feel

Manav Patnaik

BAML then comments here Just it And little a wins Was on just a the Wealth, was it your bit lot contract? color you more single ramp just growth and of the Or drivers what in give the curious there? if of maybe there. could there? were

Phil Snow

Yes.

I mean, at no, well we're BAML. doing very So,

to that think contributor deal us a year. significant I QX and was obviously of for last great was a

larger and the So I some healthy. Wealth just But in doing tougher was think nice also well deceleration comp. is in in the a part are you at Wealth could firms wins pipeline middle very some quarter very that have very within we've Americas, this we expected and had markets given of the

But the are some So come we're for any, there question, deals bit relying to just the there to little guidance of back larger going that are on not gave previous out like which us, deals the year. at range more end binary. massive within the we

Operator

line Your Jefferies. next from question from comes Mazari the of Hamza

Your is open. line

Mario Cortellacci

This Hamza. for Cortellacci Mario actually is

channel. how and there's off Just you're sounds mentioned said question, much how some if, know as wondering didn't wanted the some of binary. just guys you kind binary in you larger among things say is piggyback the is you wirehouses, bigger But and like it how if there consolidation do are consolidation the Wealth think And among and fare positioned and you you that well there markets just doing are the to players? you'll obviously is middle are deal But wins. when more positioned

Phil Snow

think well. I us. right, not greenfield a all an we is area offense. that area It's defending This felt essentially, for it's we're

strategy continue investment the as years lot Wealth terms of think well in put to -- into a to A have exceptional. effort technology. is it. product for our of big piece is the three I content, next of that offering and we We as just the bolster

wealth much the there, I going we're things some advisors to the of easier. that generation advisor make life so a of to and think, next are There financial do

cognitive of advisor of that's taking that's our make life essentially wealth to the efficient. computing the the And capabilities, risk much some more and adviser integrating financial of some

So this space is about. a we're excited super

a is means crack. disruption to take there for a is consolidation, come when it newcomer FactSet in and Typically, opportunity an and like new

So are big we're contracts. firms. of lots in RFPs. long They have These

about exceptional us. the business we in overnight. But of them don't win front piece You of our feel opportunity this and

Mario Cortellacci

And I'll over. it one more and just turn

of you isn't how much and lended give us business big can markets commercial explored or your focus products said, those in other But you as Wealth, think of for Or sense insurance? maybe the of you. part much say, of banking do maybe like as white is themselves this you a lot So there how a to you've space a well?

Phil Snow

a a to continue I and commercial So We cost. had there, opportunities very at some that good really lot but for good admittedly banking is market, there. win and year it interesting. that and our a seats I think was offering web we think pretty last will explore Asia-Pac But in lower was of proved

in good We have business pretty right now. insurance

about what great the continue product, which the we've for is our pipeline good risk got lot things Analytics my multi-asset some talked clients risk at insurance of one is, is I of invest we in class the in to in. is looks insurance a resonate our script got and a risk companies. that with good products. So We've of And really risk momentum space,

Operator

the comes William Blair. question from Nicholas Andrew next Your from line of

Andrew Nicholas

terms In decisions the pipeline, on sounds a it those decisions. larger waiting Any to made? few when like on Wealth you expect you're be of color

Phil Snow

Some year. are of fiscal this them

Some of are further them out.

Andrew Nicholas

was I of Analytics, could an particularly relates on force to wondering update as it the if kind momentum realignment. And then in sales you provide

the As sales progress on just rear view if with you that update gets further in to and respect further momentum. mirror, could us wondering

Phil Snow

has of we than had very than good the paid really And And fixed quarter pipeline movement the Yes, year and was worse so a income. that area into of last very fixed specialists have hoped. the that the one did we good strong income for we Analytics off. back areas

great we've team the leadership is got some excited. there, So

of is performance BISAM the And are risk, are showing of of the really doing Analytics combination a momentum Vault. a with a to I APIs mentioned, We unit having remind strong well. product in We're QX. had fixed we income, very see sales ton lot The gaining we Vault within that traditional momentum. everyone, of areas is of lot with PA. That the APIs kind there. The number that And of tripled Vault. are momentum very

a is of so our Analytics lot APIs. And that

there we of trading and I a lifecycle. really So space. are Analytics. these workflow solutions the about in momentum portfolio the mentioned also all-in-all, lot And our good feel the

get now than longer is areas, taken rest So and ago. we've of think acquisitions momentum fiscal the larger what a into out solutions and It clients bunch seeing I made of to the years those helping we're three a technology integrated. us efficient expected I from But has in be standpoint. more great those the the year workflow

Operator

from question Stanley. Kaplan line comes Morgan of next Your from Toni

open. line Your

Toni Kaplan

I wanted competitive it the what color to led Or or out research or on sort related could getting ask losses? the firms on closing, cancels? another firms or Was question consolidation, equities, to to or of just banking, cancels. extra any give you of

Phil Snow

it's were Toni, of had we opportunities can't firms. firms very that. particularly We're things -- other couple of into sell-side I firm, that anticipate. at are of The firm. the some and pressure, a I where of firm some Phil. middle very was specific get with relationship the we there's forward. moving them, was didn't on feeling bigger that a a happened we clearly There a the excited typical Yes, have the are strong these But a the lot banking markets terms sell details. seasonal happen One think about at shown. it cancels side in the larger

things we choppy longer firms think for up lots seeing of numbers opportunity in going the that's feel to doing work to a way at some them, more term the us. we're solutions as But the little of but I it's about bigger stack you're provide good these for bit be QX. our and right what

Toni Kaplan

margins stronger And expected? benefited the it FX then a just follow-up, how than find to were lot want Thanks. for out because helped margins, they this and there my quarter that I if if much anything one-time, just FX was wasn't

Helen Shan

Yes, sure. question. Toni, thanks for your

$X less was So and of about less which actually a obviously of course the lot during year FX this quarter, the in the than previous benefit million, 'XX. FY is

material impact. a not was that So

If our exactly we're you QX, the quarter to margin compare XX.X%. this same,

more that So we've of consistency reflecting I the the forth the think it's course actions the year. of of over put

Operator

line from comes Kramm question UBS. of Alex next from the Your

Your line is open.

Alex Kramm

of, hearing a of you little is supposed talked the you a that just I think I financial the little launch XQ the has bit data competitor a to think or some the that you your still full things bit? firms different industries more Phil, they more about also around is about have this SNL But one competitor. wait there cover, of talk might banks. be appetite breadth. excitement of services a in-depth some lot so of that until I'm that Can

of to in I solution years, for real a to Can how this a few competitor? and guess much So Thanks. out be touch just be a going maybe is it's you a little now niche it bit? going

Phil Snow

So I sectors, your To get around done believe, all three can't this we're eight we them years. point, attacking over the year. next

doing So wage have and biggest it we these that order will think hired we methodical from we're the each our for the have We've all of for sectors impact us. industry sectors. to the a experts already very outside, in way work plan through

So already quarter. they are board this on

it's firm essentially. we on So there to did I job the hiring, exceptional think going and depend an

appetite or So more the to in of XX% -- some the year. may XX% this eight, be for one some But that are very very have healthy a feel impact choice we're and functionality, of but fiscal may want the we some sectors, area happy seeing this two some value. going may of firms just XX% want fund with all we

with QX very already have. financial in firm we think the we win. pipeline data good remember one I if that or had fact, I the can't for another QX in it's for In

Alex Kramm

of to a the obviously this it secondly, of I've the I mean, environment, call yours. competitors hearing opportunity on all to you know us just which an costs probably the tough comes effort side, reduce really of on expensive again been then And mentioned bit little when about. more

years, you've your think are to that expensive to I that something last done on some So and that's competitors perspective? think couple is the focus it seeing benefiting but or is I And to going few next all along you from acceleration this be degree. an some more been cutting as in usual over help the in of quarters of business that going from you've

Phil Snow

a seeing this. grassroots was for there's we Europe, an a to it's But what meetings trip having I'm feeling you are that, more these are of costs good and that cost where I effort I is on appetite couple what bit do think given I been firms more of people recent top-down choice been think just to larger to lot to be pressures I a a do of little at to going firms, some a of and at of historically, described. a have push had that more save of more

Operator

next from line Foresi Joseph of question Your comes the from Cantor Fitzgerald.

open. is line Your

Joseph Foresi

can isn't stuff because some It starts the to that. side well. understand as growth buy sort been When side an portfolio you accelerate, organic you'll and maybe sure seems because think we stuff like hit sized? right inflection you're where point portfolio sell a shift of, going the of all working has I'm through, do

Phil Snow

but haven't predict is the portfolio we talked when just is Well, Joe in efforts which of when our I'm we our there hard described in I that the to of look future, suite, selling I the QX, about momentum and at to can content, what a I really all we having lifecycle, Wealth pipeline lot point CTS fill inflection today, point when product to Analytics, you Obviously we're out that. but exceptional that talked that it's hoping to this the about terms great. our think

industry on the research are of pressure and we in seeing lot obviously I people our think side. pressure a

that's a of that's the we in what is we've bit to feel So got of strategy really little and like harder the excited sort to team right kind execute even tough that's piece got environment. we've a a predict, but

Joseph Foresi

of can guess of the breakdown could versus to my percentage rough what business pieces is at that start us the model kind follow-up give said get right you or we're that out inflection a to question. you now. the general I Thanks. the of Maybe that the there any pieces a business, start is ballpark we old around growing so an any will and wondering thoughts there's inflection you could sort ourselves. hope I'm old point point revenue, we new if or around if numbers of there of they're numbers from just because Yes. just that be the

Helen Shan

Helen. is your mean to for you client, question. when as a bundled the even provide are what well. This I we Thank talk we of lot

now breaking don't but call we have each to actually on updates what So, we'll plans be as right out, as can. that certainly go we you give we

Operator

of from comes Rosenbaum question from next Your Stifel. Shlomo the line

Your open. is line

Shlomo Rosenbaum

different platform? there understand just to death, Not are to or question. people I moving quick that cancellations longer no a want a bit to just research a beat Phil, to little but that it more? is just dynamic they that are

Phil Snow

hiring have does that I the all Shlomo. is it that don't less research sort just side detail, of I within going of people pressure some on. right, imagine of

may Some of competitive be it pressure.

are there it to I'll taking market others us. Again, it's point quarter. and where that from think situations there are we're typically fact the smaller share taking I a

too numbers, out just quarter. quarter for So for we're numbers this the the think read about because calling one much it's I wouldn't QX but picture, when QX that it and of our into larger especially, big you in this

Shlomo Rosenbaum

or I Cap to side get that going any stuff? that's guess, becoming But at pickup trying anything the there -- on people change in really... that's trying what your is kind IQ Refinitiv, to, are guess, out, heels? it's any there in is in it just what to nipping figure Is on of of I not there any I'm is

Phil Snow

the doing We market we're still well at I -- competitive share market standpoint. win-loss, from I a when share, taking still look think

Shlomo Rosenbaum

some metrics I can the any generate maybe an of into interesting seems besides, then FactSet, Are over tracking? additional of want business starting like to revenue give And you APIs, there? the delve just It how that's there are part you Open us to any meaningful more.

Phil Snow

Yes.

there. momentum some it. There beginning different to are we're get pieces to So

the piece the that's data the CTS growth really that created. think, platform So is in exploration I we've generating,

alternative So some to is some FactSet-owned the providers pipeline beginning providers are for look we've addition in added, we're see content some in the to of that that. growth it's content to seeing with and really really ability you're alternative the that of of come the a at pretty from of and healthy the lot a But combined Open our data. data

the data Tableau is and the I to piece programming and model using scientists future begin the use, ability in think of the and in that's the exciting as really going want it. of kind Python much in future the of come most analyst to to the what

Operator

next of Bill Fargo. Your from Wells comes the question from Warmington line

open. line is Your

Bill Warmington

So growth? and digit I to would you the turned quarter. that to had negative you and Analytics, strength to target ask the wanted churn and CTS Wealth, that return how by had take I type take really in this will just of Research ask it that result and confirm you've that low-single to mentioned mentioned long was the it think application, if

Phil Snow

Yes.

you're Bill. So right,

negative. businesses smaller The quarter, were a it's positive other three this Again, Research is and quarter.

we and look about The markets out predict. allow to we feel investments on So what believe, do. over will deep that bolster as grow in StreetAccount, the can We business guidance time. sort again, think private our it's of quarter, we it in to making gave good business and for of Research rest that we're the all hard longer-term sector and last the we year to business

Bill Warmington

could follow-up data business, a on a like potentially you the seems feeds become that for then question commoditized. business that And

offerings you And wanted about your so to I are doing to there? guys ask what differentiate

Phil Snow

Yes.

unique, So some people have other of is it. data the

the years always is over last XX that of content. the integration I think marketplace value brought the to FactSet the has

you the hard out a so or marketplace a sets data. data one the is tools of but the that deliver data So all the to data library, can can day analyze providing you work that and integrating use base as

do we So do. that's what very We well.

people have value how but it integrate real and other to well great for it's our together our content systems. course, how with sets to data can own Of we is well it well and within the monetize, content as other plays

Operator

from of Chu Bank from America. the comes question next David of Your line

open. Your is line

David Chu

So seeing budgets is let's what some a previous client I related terms cutting in to color can focus say question, year on you're in overall? cost just a more of mean, you ago? provide versus

Phil Snow

is. it I believe Yes,

us. If I FactSet of that provide owners, I that be wealth types planned And it's asset to of include think is cost that's them in client them other are really that's the funds, allow in -- a and sovereign particular, which managers to we tools if continue growth it to efficient. managers. there, pressure about exciting sponsors think we're active -- up more making under to lot progress with where active be an for area and out so that's

a We're hedge I of doing positive very well product. with We're funds. were that CTS we funds selling lot hedge this quarter. mentioned

seeing are We in good momentum private equity.

but investing, area space. a going the that's that we're corporate it's us. rapidly. smaller pretty well of That but We're to area that's So build our an that's momentum continues business, one in doing for

long-term going solutions good other have momentum. business. of we're FactSet's of are managers So a but that providing we're obviously there big a for great lot them, We're into, markets that active piece or

David Chu

number year? run XQ rate a the for And is proper Helen, the CapEx

Helen Shan

question. that for Yes, you about it's that. Thank

We are expecting to be year-on-year. up

million this we So like an we more I around million looking are last for year and think year. $XX ended $XX

Operator

Northcoast Your of next Keith the from question line Research. Housum comes from

open. Your line is

Keith Housum

the employees, XX one customers that you're XXX your Phil, customers as of FactSet how we protected rid Do look employees, employees. some say contracts if you into is protected at guys their not? of goes from getting have baked environment, are just your down research to minimums or of

Phil Snow

some We do in cases.

gotten our certainty have have some floors do think point. in within clients as we their with time, bigger and So for look over I budgets has footprint at them, more they gotten and larger

percentage that that made is The and towards, other continues a bigger and tied our bigger more we've is workflow people. of solutions and less thing ASV to

the just same So with Analytics And I thing. what less the with solutions. and in to lot is of do has lot enterprise seat the a count business a and to do feeds more majority the described workflow

already an It won't it's and it's that capitalizing but strategy for on. the happen evolution. one right obviously, overnight, I So think we're us

Keith Housum

your I floors, not? as consolidates further on some some some year can of the research with well some So then as if protection may understand do of contracts say as based next you

Phil Snow

right. think I that's Yes,

Keith Housum

the to that two -- affected year to And turning last there declined of just quarter sequentially? is this compared that revenue then if at last anything revenue anything quarters. the that international down revenue end side. I unique International actually guess I or Was in unique your

Philip Snow

if It's there's different lot think is don't to I I right we for and under opportunity think, ton Americas probably pressure continuing of hard But Yes, of under, anything Asia-Pac. a a moves see not of unique. clearly than the Europe reasons. imagine lot that make Europe is there. in more pressure We Asia-Pac. a the

Helen Shan

mentioned mean is before, I I pipeline healthy. Philip the think as Yes,

seen new have business We some growth. good

feeling we as positive the more growth think rate. year, rest we're about the for So of the

Operator

from McVeigh Credit Your the comes Suisse. from of Kevin next line question

Your open. is line

Kevin McVeigh

as seen even Does Phil, all form Refinitiv XX in the that change Blackstone, last months as in competitive so with within the change continent the hands from LSE on competitive you part at twice you have the any any thoughts part or behavior dynamic a of current shift? perspective? or obviously become of the

Phil Snow

standpoint obviously me It Refinitiv about Refinitiv from of the is feel us much different a lot we've doesn't dealing competitive a be decades. thought than been the with to combination couple over frankly with LSE to to I've last and that going of what that.

now. So what's the on both their there we're uncertainty capitalizing I that and would uncertainty base happening, right of employee is within base think client and in terms still just

Kevin McVeigh

history, as opportunity up other kind free that advantage points opportunity I'll in see to that? you're with incremental for competitive kind or extent If the the you would does that look -- of And any of you no? to lay integrating at on were

Phil Snow

I'm not question. understand sure I the

Kevin McVeigh

their disruption consolidating of you share? Is was guess they I incremental in capture there take see opportunity there sales sure advantage to do force, that. an I'm

Phil Snow

opportunity I and think the in us and base to Yes, market there take base, conversations so. in client employee clients think have share. I to uncertainty Yes, into describe, their then and yes, for that's was there I what is go is trying

Kevin McVeigh

the just follow-up, investments research then the earliest the that? see quick revenue you And think the to product, you're do making you'll see in benefit when of start from kind

Helen Shan

minimal two, So as the general, in see excuse but expect would with see the this we about ramps think when content XXXX. the to growth it we year, we both balance and into me, total coming technology in XX% overall, of coming year up, in XXXX about

more in of a So terms back-ended it's of the list.

Operator

from Your Craig Partners. next question from the Huber of comes Huber Research line

Your open. line is

Craig Huber

in you I major up was quarter reported comments, just missed in your hear that here? showed guys first I the to the minutes of wanted any cancellation but few there think I fees revenues your

Phil Snow

fees? Cancellation

Craig Huber

was versus remaining for Well, many for ASV yours revenues the course third forward, ago, months if clients of only degree guess pulled million so. any the three just forward question? up $X.X that the the was your any I canceled of some revenue years down clients maybe slightly to to account time the or in revenues last is November that recognized that first in wondering I'm to XX quarter, there were sequentially, pulled

Helen Shan

No, don't there Sure, due cancellation this forward pull clients. is is from Helen. we that to no see

all. driver that's So a that's model not not so at works, how our

Craig Huber

million Wealth still went the ASV Is thinking et with down with level weighted the slightly you're other that's million question for $XX in ago, your the My increase more like CTS, through months your of comfortable ASV. that and It year? confidence cetera. sounds $XX to again you three versus back-end

Phil Snow

correct. Yes,

we've the issued that we're be that plan, good quarter. weighted about the believe it's terms half of the the year be we may XX-XX sort But out back somewhere of is in between it weighted, second in we feeling So still, back-end always we the heavily this guidance year of that this way that I think that range more our modeled And going than typical. believe particular historically, way split. go thought year and to the if you last about we just

Craig Huber

think product in XXXX. year? three-year versus you And fiscal to much end costs, to of of excess the enhance of we into the said program you this fall by the time I guess year million will investment then How think $XX that I this get of next extra

Helen Shan

go So, that let reiterate to through, works. how me

have of 'XX for million will years each 'XX. and So we in the 'XX, in that investing be $XX we

So the year, into it's in million. terms falls of what first $XX

Craig Huber

quarter? the was in And obviously that very first little of

Helen Shan

related the related that capabilities of much takes to Because about spend content, we're technical on terms people and of do especially sides building, is to Phil expertise talked the to digital the for and capabilities. Right. there as the has time in it also which hire,

Operator

Tong from of Your line Sachs. last George question Goldman comes from the

Your open. line is

George Tong

years. Organic to growth ASV plus level services in professional decelerated is its lowest

and coming changes elaborate you about with budgets a reductions. under and you're in sell-side internationally? pressure both buyside US seeing on talked the headcount Can bit some client You headcount

Phil Snow

it's George, Phil. Hey

in think So the on headcounts we're yes, I office. pressure seeing front

I well known. that's pretty think

portfolio to of over terms see is type pressure sustained think more are our think in number and I of I thesis and people solutions analysts, managers, to to that traders of technology time we'll a research go that more want going the efficient clients solution.

George Tong

wallet broader existing uptake You penetration? new expectations with noted add-on the decrease you're cross clients. versus you discuss to Can sell with traction trends your client where in a seeing and business product you your

Phil Snow

Yes.

So in existing year booked had a business that that add-on we deal, an with was QX client. lot as of large that really last had to an was but do the

positive mentioned and very product feeds call was of that script of side this majority Wealth for a think and used I momentum is we're by on seeing throughout the account. my I So lot of Analytics vast in driven the and lot as a the it for

Operator

There Phil. back at to are time. no further turn this call the questions I over

Phil Snow

joining you I'd to remain changes everyone. all Thanks industry that to are our clear thank and placed happening charge. well today. in It's we the like for and us the lead speed

we Norwalk, here Company is reflected future, already headquarters are Connecticut. taking the for the root in efforts as which new in our position Our global

growing to proud our holidays outlook efforts conviction Company of in truly and space all for very and is and you. create And want I I'm our to collaboration that and happy values. our to we've reiterating and solutions the made flexible innovation of for mirrors fuels by the open conclude year Demand

additional you questions, Hyder Operator, have forward to quarter. you next speaking to we call. please Rima look and that If ends today's call

Operator

This concludes conference call. today's

You may now disconnect.

FactSet Research Systems (FDS) 19 Dec 192020 Q1 Earnings call transcript